The World Bank’s latest Tunisia Economic Monitor projects growth of 2.3 percent in 2026 and an average of 2.1 percent in 2027-2028, while warning that rising import prices, public finance imbalances and severe water scarcity threaten the outlook. Water shortages could reduce Tunisia’s GDP by 6.4 percent by 2050 without action, with effects extending from agriculture to tourism, manufacturing and other water dependent sectors. Tunisia has about 380 cubic meters of renewable freshwater per person annually, below the threshold for absolute water scarcity. Water and climate stress could eliminate at least 30 percent of agricultural jobs by mid-century, affecting a sector that employs 14 percent of the national workforce and up to half of rural workers. The report calls for infrastructure investment under the government’s Water Plan 2050, estimated at about USD 900 million annually, alongside stronger governance, improved cost recovery with protections for vulnerable households, lower network losses, treated wastewater reuse and better irrigation management.
2026-09-22World Bank
World Bank projects subdued Tunisian growth and warns water scarcity could cut GDP by 6.4 percent by 2050
The World Bank projects Tunisia’s growth will slow to 2.3 percent in 2026 and average 2.1 percent in 2027-2028. It warns that water scarcity could reduce GDP by 6.4 percent and eliminate at least 30 percent of agricultural jobs by 2050 without investment and governance reforms.